Maine Escrow & Title
Practice Questions & Answers (2026)
Escrow, title, and closing questions on the Maine exam test how real estate transactions are closed, how title is transferred, and what happens at settlement. Maine uses title companies or settlement agents to handle closings, and candidates must understand the closing process, settlement statement, and title insurance requirements under Maine law. Title insurance, title searches, and the difference between standard and extended coverage policies are tested, as are the specific closing costs that are customarily paid by buyers vs. sellers under Maine practice.
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Maine Escrow & Title — Practice Questions & Answers
107 questions on Escrow & Title from the Maine real estate question bank. First 10 are free — sign up to unlock all 107.
Q1. In Maine, where are real estate deeds recorded to provide constructive notice?
Explanation
In Maine, deeds and other real property documents are recorded at the county registry of deeds, providing constructive notice of ownership and encumbrances to the public.
Q2. A 'cloud on title' is best described as:
Explanation
A cloud on title is any outstanding claim, lien, or encumbrance that may call into question the validity of the owner's title, such as an unresolved judgment or disputed boundary.
Q3. Which of the following is required for a deed to be valid in Maine?
Explanation
For a deed to be valid in Maine, it must be in writing, identify the grantor and grantee, contain a legal description of the property, and be signed by the grantor. Recording is required for constructive notice but not for validity.
Q4. Earnest money that is properly held in a broker's trust account must be:
Explanation
Earnest money must be held in a separate trust (escrow) account, completely separate from the broker's personal and business operating accounts, to prevent commingling.
Q5. Maine is an attorney closing state. This means:
Explanation
Maine is an attorney closing state, requiring that a licensed attorney conduct the closing, review the title, and disburse funds. Real estate agents do not handle closing funds.
Q6. In Maine, earnest money deposited with a broker must be held in:
Explanation
Maine law requires that all earnest money and client funds be held in a separate, federally insured escrow or trust account and never commingled with the broker's personal or business funds.
Q7. A title insurance policy in Maine protects against:
Explanation
Title insurance protects the insured against losses arising from defects in title that existed prior to the policy date, such as unknown liens, forged deeds, or errors in public records.
Q8. What is the difference between an owner's title insurance policy and a lender's title insurance policy?
Explanation
An owner's title insurance policy protects the buyer's equity and ownership interest. A lender's (mortgagee's) policy protects only the lender's interest up to the loan amount. They are separate policies.
Q9. In Maine, a deed is legally effective to transfer title when it is:
Explanation
A deed transfers title upon delivery to and acceptance by the grantee. The deed must be signed by the grantor but is effective upon delivery and acceptance, not upon recording.
Q10. Recording a deed in Maine's registry of deeds:
Explanation
Recording a deed in Maine's county Registry of Deeds provides constructive notice to the public of the transfer. The deed is valid between the parties without recording, but recording protects against claims of subsequent purchasers.
Q11. A Maine closing involves proration of property taxes. The seller's closing is July 1. Annual taxes of $3,600 are paid in advance. How much does the seller receive back as a credit?
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